ACFI 200 HW1 Fall 2020.docx eferences Mailings Review View Help Search Problem #1: Transaction Analysis (66 points) Throughout this assignment, you should only use these accounts: Accounts Receivable Dividends Prepaid Advertising Accounts Payable Insurance Expense Prepaid Insurance Accumulated Depreciation Interest Expense Prepaid Maintenance Accounting Expense Interest Payable Prepaid Rent Additional Paid in Capital Land Rent Expense Advertising Expense Maintenance Expense Rent Payable Building Notes Payable Rent Revenue Cash Omice Equipment Salaries Expense Common Stock office Equipment Expense Salaries Payable Deferred Revenue omice Supplies Service Revenue Depreciation Expense Office Supplies Expense Utilities Expense Prepaid Accounting Be aware that you will not use every account listed above in your entries. Required: Prepare the entries in proper general Journal form to record the following transactions for Dizzy Controls Inc. that began operations in the fall of 2020. If an item describes an event that does not result in a recordable transaction, write "No Entry Required in the journal entry form. (3 points per entry including one point for proper form 66 points) a) On November 23, Dizzy Controls Inc. received $1,350,000 cash from investors to finance the business operations and issued 200,000 shares of its $1.25 par value common stock. DATE ACCOUNT NAMES DEBIT CREDIT 11/23 Cash $1,350,000 Common Stock $1.25 x 200,000 sh. $250,000 Additional Paid In-Capital $1,100,000 Supporting Computations Required: Cash - $1,350,000 Common Stock = 1.25 x 200,000 = $250,000 Debits Credits $1,350,000 - $250,000 - $1,100,000 Additional Paid in capital Individual Homework 1 Page 6 of 13 ACFI 200 HW1 Fall 2020.docx References Mailings Review View Help Search Individual Homework 1 Page 6 of 13 b) On November 25, Dizzy Controls Inc. exchanged 40,000 shares of its $1.25 par value common stock for a plot of land that the Company will eventually use as the site for an office building. The Company and the original land owner agreed that the common shares and the land had a total fair value of $270,000 on November 25 ACCOUNT NAMES CREDIT DATE 11/25 DEBIT $270,000 Land Common Stock $1.25 x 40,000 shs. Additional Paid In-Capital $50,000 $220,000 Supporting Computations Required: Land Assets Land - $270,000 Common Stock Issued - $50,000 270,000 - 50.000 - 220,000 c) On November 28, Dizzy Controls Inc. signed a contract with an insurance company for one year of general Insurance coverage beginning on December 1. Dizzy Controls Inc. issued a check to the insurance company for $21,000 On November 28 that represented the total premium for the year of insurance coverage. ACCOUNT NAMES DATE 11/28 DEBIT CREDIT d) on November 29, Dizzy Controls Inc, signed a one-year lease agreement with Hatch Properties to rent office space beginning December 1 at a monthly fee of $7,500. Rent payments are due monthly on the ACCOUNT NAMES DATE 11/29 DEBIT CREDIT C Focus O BE ACFI 200 HW1 Fall 2020.docx References Mailings Review View Help Search Individual Homework 1 Page 1 of 1 e) On November 30, Dizzy Controls Inc, borrowed $600,000 cash from its bank and signed a two-year promissory note bearing 7.4% annual interest due on the last day of the month. DATI ACCOUNT NAMES DEBIT CREDIT ) On November 29, Dry Controls Inc. issued a check for $82,400 to its accountant, Cooper Lybrand, for accounting services used to setup the company. DATE ACCOUNT NAMES DEBIT CREDIT .) On December 1, Buzzy Controls Inc. signed a two-year contract with Deluca Foxit Corp. for monthly maintenance services at a cost of $2,750 per month beginning on December 1. Dizzy Controls Inc. issued a check for $2,750 for December maintenance services. DATE ACCOUNT NAMES DEBIT CREDIT h) On December 3, Duzy Controls Inc, received a delivery of office equipment that it purchased at a total cost of $640,000, Dry Controls Inc, immediately issued a check for $480,000 to its supplier and agreed to pay the remaining $160,000 balance in 30 days DATI ACCOUNT NAMES DEBIT CREDIT Focus O BE E D ACFI 200 HW1 Fall 2020.doc En References Mailings Review View Help Search Individual Homework 1 Page 3 of 13 On December 3, Dizzy Controls Inc. received an invoice in the amount of $3,500 from the freight company for the delivery of office equipment. Duzy Controls Inc. Immediately issued a check for $3,500 to settle the bill. DATE ACCOUNT NAMES DEBIT CREDIT 1 On December 4, Dizzy Controls Inc. received a delivery of office supplies that it purchased on credit at a cost $22,500 due in 30 days. DATE ACCOUNT NAMES DEBIT CREDIT k) On December 9, Dizzy Controls Inc, completed services for its first dient, Lawrence Enterprises, and billed the client $96,000 for the work performed. DATE ACCOUNT NAMES DEBIT CREDIT 1) On December 15, Dizzy Controls Inc, paid $7,500 cash to Hatch Properties in payment of December's rent. DATE ACCOUNT NAMES DEBIT CREDIT Focus ACFI 200 HW1 Fall 2020.docx References Mailings Review View Help e Search m)On December 17, Dizzy Controls Inc. paid $92,500 cash to its employees for their services that the company used during the first half of December DATE ACCOUNT NAMES DEBIT CREDIT n) On December 18, Dizzy Controls Inc. issued a check for $96,000 as a partial payment on its account balance for the office equipment received on December 3. DATE ACCOUNT NAMES DEBIT CREDIT o) On December 19, Dizzy Controls Inc. paid $11,000 cash to its local newspaper for advertising that will run in January and February 2021. DATE ACCOUNT NAMES DEBIT CREDIT p) On December 22, Dizzy Controls Inc, completed services for a client, vatca Trading Co., for a $162,000 fee. The company received $32,000 cash from Marca Trading Co. and billed the client for the remaining $130,000. DATE ACCOUNT NAMES DE SIT CREDIT Individual Homework 1 Page 1 of 13 Focus O ACFI 200 HW1 Fal 2020 doar Em References Mailings Review View Help Search Individual homework Page 10 of 13 On December 23, Dizzy Controls Inc. received $28,500 cash from Lawrence Enterprises as a partial payment on its account from December 9. DATI ACCOUNT NAHIS DEBIT CREDIT r) On December 29, Dizzy Controls Inc. received a bil in the amount of $3,750 from Inter Ad for internet advertising used during December DATE ACCOUNT NAMES DEBIT CREDIT s) On December 30, Dizzy Controls Inc. received a check for $62,700 from Luca Mio. Company of which $25,900 was for services provided in December 2020. The remaining $36,800 was for services to be provided in January and February 2021 DATE ACCOUNT NAMES DEBIT CREDIT t) On December 31, Duy Controls Inc. received a bill in the amount of $6,350 from its titty company for services used during December DATE ACCOUNT NAMES DEBIT CREDIT Focus O E ACFI 200 HW1 Fal 2020.docx ut References Mailings Review View Help e Search Indal Homework 1 Page 11 of 13 u) On December 31, Dury Controls Inc. issued a check for $3,700 payable to its bank for the interest incurred for using the proceeds of the loan during December DATE ACCOUNT NAMES DEBIT CREDIT v) On December 31, Dizzy Controls Inc. paid $12,500 cash to its stockholders as distributions of a portion of its profits earned in December DATE ACCOUNT NAMES DEBIT CREDIT o ai ACFI 200 HW1 Fall 2020.docx ut References Mailings Review View Help e Search Individual homework 1 Page 1 of 13 Problem 2 Post te Selected Accounts (14 points) Post the applicable journal entries recorded above to the selected applicable Accounts below as applicable to determine their balances as reported by Day Controls Inc. at December 31, 2020. You must compute the resulting balance of the accounts. will grade your answers based on the consistency of your postings with your journal entries. CASH points O ACFI 200 HW1 Fall 2020.docx References Mailings Review View Help Search Individual Homework 1 Page 13 of 13 Accounts Receivable 3 points Accounts Payable 3 points T G ACFI 200 HW1 Fall 2020.docx eferences Mailings Review View Help Search Problem #1: Transaction Analysis (66 points) Throughout this assignment, you should only use these accounts: Accounts Receivable Dividends Prepaid Advertising Accounts Payable Insurance Expense Prepaid Insurance Accumulated Depreciation Interest Expense Prepaid Maintenance Accounting Expense Interest Payable Prepaid Rent Additional Paid in Capital Land Rent Expense Advertising Expense Maintenance Expense Rent Payable Building Notes Payable Rent Revenue Cash Omice Equipment Salaries Expense Common Stock office Equipment Expense Salaries Payable Deferred Revenue omice Supplies Service Revenue Depreciation Expense Office Supplies Expense Utilities Expense Prepaid Accounting Be aware that you will not use every account listed above in your entries. Required: Prepare the entries in proper general Journal form to record the following transactions for Dizzy Controls Inc. that began operations in the fall of 2020. If an item describes an event that does not result in a recordable transaction, write "No Entry Required in the journal entry form. (3 points per entry including one point for proper form 66 points) a) On November 23, Dizzy Controls Inc. received $1,350,000 cash from investors to finance the business operations and issued 200,000 shares of its $1.25 par value common stock. DATE ACCOUNT NAMES DEBIT CREDIT 11/23 Cash $1,350,000 Common Stock $1.25 x 200,000 sh. $250,000 Additional Paid In-Capital $1,100,000 Supporting Computations Required: Cash - $1,350,000 Common Stock = 1.25 x 200,000 = $250,000 Debits Credits $1,350,000 - $250,000 - $1,100,000 Additional Paid in capital Individual Homework 1 Page 6 of 13 ACFI 200 HW1 Fall 2020.docx References Mailings Review View Help Search Individual Homework 1 Page 6 of 13 b) On November 25, Dizzy Controls Inc. exchanged 40,000 shares of its $1.25 par value common stock for a plot of land that the Company will eventually use as the site for an office building. The Company and the original land owner agreed that the common shares and the land had a total fair value of $270,000 on November 25 ACCOUNT NAMES CREDIT DATE 11/25 DEBIT $270,000 Land Common Stock $1.25 x 40,000 shs. Additional Paid In-Capital $50,000 $220,000 Supporting Computations Required: Land Assets Land - $270,000 Common Stock Issued - $50,000 270,000 - 50.000 - 220,000 c) On November 28, Dizzy Controls Inc. signed a contract with an insurance company for one year of general Insurance coverage beginning on December 1. Dizzy Controls Inc. issued a check to the insurance company for $21,000 On November 28 that represented the total premium for the year of insurance coverage. ACCOUNT NAMES DATE 11/28 DEBIT CREDIT d) on November 29, Dizzy Controls Inc, signed a one-year lease agreement with Hatch Properties to rent office space beginning December 1 at a monthly fee of $7,500. Rent payments are due monthly on the ACCOUNT NAMES DATE 11/29 DEBIT CREDIT C Focus O BE ACFI 200 HW1 Fall 2020.docx References Mailings Review View Help Search Individual Homework 1 Page 1 of 1 e) On November 30, Dizzy Controls Inc, borrowed $600,000 cash from its bank and signed a two-year promissory note bearing 7.4% annual interest due on the last day of the month. DATI ACCOUNT NAMES DEBIT CREDIT ) On November 29, Dry Controls Inc. issued a check for $82,400 to its accountant, Cooper Lybrand, for accounting services used to setup the company. DATE ACCOUNT NAMES DEBIT CREDIT .) On December 1, Buzzy Controls Inc. signed a two-year contract with Deluca Foxit Corp. for monthly maintenance services at a cost of $2,750 per month beginning on December 1. Dizzy Controls Inc. issued a check for $2,750 for December maintenance services. DATE ACCOUNT NAMES DEBIT CREDIT h) On December 3, Duzy Controls Inc, received a delivery of office equipment that it purchased at a total cost of $640,000, Dry Controls Inc, immediately issued a check for $480,000 to its supplier and agreed to pay the remaining $160,000 balance in 30 days DATI ACCOUNT NAMES DEBIT CREDIT Focus O BE E D ACFI 200 HW1 Fall 2020.doc En References Mailings Review View Help Search Individual Homework 1 Page 3 of 13 On December 3, Dizzy Controls Inc. received an invoice in the amount of $3,500 from the freight company for the delivery of office equipment. Duzy Controls Inc. Immediately issued a check for $3,500 to settle the bill. DATE ACCOUNT NAMES DEBIT CREDIT 1 On December 4, Dizzy Controls Inc. received a delivery of office supplies that it purchased on credit at a cost $22,500 due in 30 days. DATE ACCOUNT NAMES DEBIT CREDIT k) On December 9, Dizzy Controls Inc, completed services for its first dient, Lawrence Enterprises, and billed the client $96,000 for the work performed. DATE ACCOUNT NAMES DEBIT CREDIT 1) On December 15, Dizzy Controls Inc, paid $7,500 cash to Hatch Properties in payment of December's rent. DATE ACCOUNT NAMES DEBIT CREDIT Focus ACFI 200 HW1 Fall 2020.docx References Mailings Review View Help e Search m)On December 17, Dizzy Controls Inc. paid $92,500 cash to its employees for their services that the company used during the first half of December DATE ACCOUNT NAMES DEBIT CREDIT n) On December 18, Dizzy Controls Inc. issued a check for $96,000 as a partial payment on its account balance for the office equipment received on December 3. DATE ACCOUNT NAMES DEBIT CREDIT o) On December 19, Dizzy Controls Inc. paid $11,000 cash to its local newspaper for advertising that will run in January and February 2021. DATE ACCOUNT NAMES DEBIT CREDIT p) On December 22, Dizzy Controls Inc, completed services for a client, vatca Trading Co., for a $162,000 fee. The company received $32,000 cash from Marca Trading Co. and billed the client for the remaining $130,000. DATE ACCOUNT NAMES DE SIT CREDIT Individual Homework 1 Page 1 of 13 Focus O ACFI 200 HW1 Fal 2020 doar Em References Mailings Review View Help Search Individual homework Page 10 of 13 On December 23, Dizzy Controls Inc. received $28,500 cash from Lawrence Enterprises as a partial payment on its account from December 9. DATI ACCOUNT NAHIS DEBIT CREDIT r) On December 29, Dizzy Controls Inc. received a bil in the amount of $3,750 from Inter Ad for internet advertising used during December DATE ACCOUNT NAMES DEBIT CREDIT s) On December 30, Dizzy Controls Inc. received a check for $62,700 from Luca Mio. Company of which $25,900 was for services provided in December 2020. The remaining $36,800 was for services to be provided in January and February 2021 DATE ACCOUNT NAMES DEBIT CREDIT t) On December 31, Duy Controls Inc. received a bill in the amount of $6,350 from its titty company for services used during December DATE ACCOUNT NAMES DEBIT CREDIT Focus O E ACFI 200 HW1 Fal 2020.docx ut References Mailings Review View Help e Search Indal Homework 1 Page 11 of 13 u) On December 31, Dury Controls Inc. issued a check for $3,700 payable to its bank for the interest incurred for using the proceeds of the loan during December DATE ACCOUNT NAMES DEBIT CREDIT v) On December 31, Dizzy Controls Inc. paid $12,500 cash to its stockholders as distributions of a portion of its profits earned in December DATE ACCOUNT NAMES DEBIT CREDIT o ai ACFI 200 HW1 Fall 2020.docx ut References Mailings Review View Help e Search Individual homework 1 Page 1 of 13 Problem 2 Post te Selected Accounts (14 points) Post the applicable journal entries recorded above to the selected applicable Accounts below as applicable to determine their balances as reported by Day Controls Inc. at December 31, 2020. You must compute the resulting balance of the accounts. will grade your answers based on the consistency of your postings with your journal entries. CASH points O ACFI 200 HW1 Fall 2020.docx References Mailings Review View Help Search Individual Homework 1 Page 13 of 13 Accounts Receivable 3 points Accounts Payable 3 points T G